Brexit: Deal or no deal?
Business News
no deal?
Chamber network is that we are prepared for no deal. “No deal could result in the busiest day our department has ever seen or it could be the quietest day we have ever had. Personally, I am expecting the floodgates to open on 1 November. “I think we may have customers banging on the front
G
door on 1 November. My gut feeling is that there will be exporters desperate for advice, and that is where we come in to fill the gap. Movement of goods is way more complex than people realise.” Fortunately, David has nearly 22 years’ experience
processing export documents for grateful firms, large and small, with a wealth of knowledge which can cut through a hugely complex subject as the Brexit 31 October deadline looms ever closer. David cites a variety of technical issues which could
prove a minefield to unwitting companies if 1 November dawns without a deal, from customs declarations to certificates of origin and ATA Carnets. “At the moment, every export that leaves the UK for
a non-EU country has to have a customs declaration completed via HMRCs Chief system. There are currently 55 million of these entered every year and that figure could rise to 255 or 300 million – most of what people export from the UK goes to the EU. “If we leave on 31 October and people come in to
work on Friday, 1 November, all these extra movements will require one of these customs declarations. It is the responsibility of exporters or their appointed agent to do this and there will be a massive increase in workload, “The Government does not seem to me to have
made much of an attempt to explain to exporters that they will require these. If you have only exported within the single market, you will not know what this (customs declaration) is, I do not think that enough companies are aware that this will become a requirement in the event of no deal. “The work is often farmed out to a third party and
that is the problem. Are there enough trained staff at freight forwarders or shipping agents to undertake all the extra work in the event of no deal?” Another huge area of concern is the future of ATA
Carnets, effectively passports for goods. “The Carnet system enables people to get goods in and out of a country on a temporary basis without paperwork. We issue around 1,000 a year, to the likes of car manufacturers, jewellers and TV camera men. “The Carnet system currently works very well but the
future is a big concern because of the amount of temporary movements that take place every day. You do not need a Carnet for the EU at the moment. “We are prepared for a massive increase. It will add to our workload massively and add to company costs.
Next page: Businesses urged to identify risks
September 2019 CHAMBERLINK7
reater Birmingham Chambers of Commerce documentation manager David Harris does not mince his words over Brexit. “The ethos in the
So far the only person who has rung me is a puppeteer who said ‘will I need these in the event of no deal?’ These are expensive documents - £300, £400, £500.” EC Certificates of Origin could also spell problems by
1 November,” says David. “This is a legal document stating where goods were made. I issue them for members and non-members. “I cannot stamp that document on 1 November if we
go because it is a European document. If we are taken out on 31 October, a replacement document will have to be issued to exporters. These are all done through the Chamber network.” Incoterms, a set of legal terms which define where
the responsibility of the exporter ends and that of the buyer begins and Commodity Codes, telling customs officials what the product is and the level of duty, are other areas of potential strife. “If we leave without a deal, exporters will have to
quote the relevant Incoterm. On Commodity Codes, that might be a shock to a lot of people. You need them to export and import outside the EU. If you have only one product that might not be a problem but if you have a warehouse of 1,000 different products, that might be interesting.” But for those firms who may never have heard of the
likes of Incoterms and Commodity Codes, help is at hand, says Chambers International Hub development director Mandy Haque. “We are here to help and support businesses. We are
asking members and non-members to get in touch with us, preferably before 1 November. Whether they are members or not, we will share our advice.”
The Business Brexit Health Check, a free online tool for businesses offering personalised reports which highlight key areas where they could be exposed to Brexit change, along with top tips for preparing, is also available at
www.wmca.org.uk/brexithealthcheck
‘We are here to help and support businesses. We are asking members and non-members to get in touch with us’
Mandy Haque
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